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View Full Version : Boeing loses air tanker deal to Northrop Grumman----grab a drink first before...



Bob98SR5
02-29-2008, 10:37 PM
opening :)

Two news pieces have really gotten my ire yesterday and today. The first was the pulled out of context quote of Bush not knowing that gas was reaching $4.00/gallon (despite him being an "oil man" who is profiting off the Iraq war :roll: ) and today's story that Boeing lost the tanker deal to hose dastardly Europeans at Airbus...errr, Northrop Grumman. So why my ire for this story? Well, all i had to do is to listen to the news. and of course, the chief boeing spokesman at a certain forum I used to be a part of had to give his opinion of it too, which predictably, was parallel to the dimwitted statement from the usual union hack.

So since I cannot post this as rebuttal at a certain forum I used to be a part of b/c of a certain thin-skinned individual over there will probably ban me, so here goes my post over here. Long read, but if you want a researched opinion and why it bothers me that the press and others are blaming the USAF for being "un-American" by purchasing a plane from an AMERICAN company who partnered with a European country, read on:

1) Quite simply, the two competing companies were AMERICAN companies. But the press (in their usual drama queen fashion) and people who don't read that well have spun the story that Boeing lost the deal to a European company, Airbus/EADS. Northrup Grumman is an American company that has been around since 1924 and is still an American company that continues to be run by Americans. They are the same company that supplies our air force with the B2, Global Hawk, E2, the new F35, F16, etc, etc.

2) The NG entry was based on the Airbus A330 design, b/c NG did not have a suitable aircraft to compete with the 767 and thus, sought a partner...and that partner turned out to be Airbus/EADS. That said, the deal was still negotiated and represented by NG. Last time I checked, its not un-American to partner up with a foreign company to supply our military with the best products for our troops and the best value for our taxpayers. Recent examples:

Our own Army officers carry BERETTA 92s, an ITALIAN sidearm, and an ITALIAN company, right? Moreover, our own Army also license builds the M240 and M249 machine guns---both made by FN (Belgium). Where's the hue and cry?


3) Boeing had everything to lose when they had the deal in their hands up to 2001. They had a little...umm..ethic's scandal which is summarized below:

"Boeing CFO Sears admitted that he offered Druyun, 56, of Vienna, Va., who was one of the Air Force's top contract officers, a $250,000 executive position at Boeing while she was reviewing whether Boeing should get a $23 billion contract to provide new refueling tankers to the Air Force."

They f'd up and that's what opened the door to NG. Plain and simple.

4) Until the criteria results are announced by the USAF, I am presuming that the procurement contract process for the USAF is based on what product meets the mission the best. One analyst wrote the following on the deal and the planes:

"Analysts say Boeing also has an advantage because its KC-767 tanker is smaller and lighter than the KC-30 being offered by EADS and Northrop Grumman. That means the Boeing tanker would take up less space on the ground and burn less fuel. Still, the KC-30's larger size will enable it to carry more fuel, cargo or personnel on individual flights - making it a more efficient plane using Air Force criteria, Northrop Grumman stressed. EADS and Northrop Grumman estimate that compared with the KC-767, the Air Force would need 20 percent fewer KC-30 tankers to meet its refueling needs." (more to this below)"

While i'm sure there's way more to this, reading the above, which plane would you choose? And why was Boeing navel gazing, not analyzing the competition, whining and playing the USA card?

And comparatively speaking, how many times have we as Toyota owners heard this stupid, racist bulls##t:

Cletus says, "Why you buying a j-a-p truck, huh? Dont you know all the profits go to Japan?"

Is it because we hate our country or like to line foreign pockets with our hard earned money? Or is it because we are Americans who have the right to spend our dollars and choose the best product for ourselves? Right. So why then, should the USAF not want the same for our troops and the tax dollars that pay for their weapons? Yes, my guess is that the USAF is no different than us and how we make purchase decisions.

As mentioned above, our own Army officers carry BERETTA 92s, an ITALIAN sidearm, and an ITALIAN company, right? Moreover, our own Army also license builds the M240 and M249 machine guns---both made by FN (Belgium). Where's the hue and cry?


And now to address some other propaganda/ignorance from the chief Boeing spokesman over at (ahem...):

"Hey, it is cool that Alabama will get 2,000 jobs out of this, but it will be a long time before a factory is built to produce these..."

My comment: Funny, that's not what I read. The NG was predicated on building US plants to assemble the sub-assemblies. In fact, this is the plan, estimated jobs created, and fiscal impact over the next decade. According to NG's plan:

Yup partly true, but the complete details seem to be have left out. The KC-30 Tanker aircraft will be assembled in Mobile, Ala., and employ 25,000 American workers at 230 U.S. companies in 49 states. States that will benefit include:

• Alabama
• Arizona
• Arkansas
• California
• Florida
• Georgia
• Illinois
• Indiana
• Louisiana
• Maryland
• Michigan
• Mississippi
• New Mexico
• North Carolina
• Ohio
• Pennsylvania
• Tennessee
• Texas
• Virginia
• West Virginia

25,000 minus 2,000 = off by, ooohh, 23,000


"Boeing already has a 767 line in full operation, and the tankers could have been started on Monday."

My comment:Yes, the commercial 767, but the KC-767? Oh really? In fact, the KC-767 has been plagued by problems with its first customer, the Italian air force, who to this date, has only purchased 4. But get them off the line and built on Monday. In one word, "Fantasy Island":

"In July 2001, the Italian Air Force ordered four 767 tanker transports in the combi variant with deliveries scheduled to begin in mid-2008. The aircraft is designated B-767 and Alenia Aeronautica is assisting in development and production. The maiden flight of the first aircraft was in May 2005."

The problems with the buffeting caused by the recepticles was not rectified until 2006.

Total = 5 year from purchase to fixing all the design flaws. Similarly:

"In April 2003, the Japanese Air Self-Defence Force ordered the first of four of the convertible freighter variant for delivery in 2008. The maiden flight of the first aircraft was in December 2006."

3 years. Not quite build it and its out the door on Monday.

Furthermore, if the KC767 which has already been operational since 2005 was a superior product, then why was a plane like the KC-30 (which is not operational, but only flight prototype) selected and ordered by by the air forces of Australia, United Kingdom, United Arab Emirates and Saudi Arabia?

And predictably, the usual, ill-informed, idiot union hack spokeshole issues a statement. About 30 minutes of searching Google about this deal pretty much puts his nonsense to shame. Read the following with my comments inserted in between:

STATEMENT OF MACHINISTS UNION DISTRICT 751 PRESIDENT & DIRECTING BUSINESS REPRESENTATIVE
TOM WROBLEWSKI

"Sending American Military Contract Overseas Is An Outrage"

My comment: What is an outrage is that Boeing, with its overpaid union employees who built an inferior product got bested by a European aircraft designer that was smartly picked up by NG and who probably took the competition more seriously"

"Today, the United States Air Force announced a European company, Airbus, has been awarded the contract to build U.S. military refueling tankers. We cannot imagine a more poorly-timed or ill-considered decision."

My comment: Bending of the truth. NG won the deal. NG partnered with Airbus. The insulting playing of the "USA card" won't do any good. It's akin to crying about losing the championship game over 1 controversial call when you are predicted to wipe out your opponent. It was Boeing's bid to lose. Its an insulting misuse of our country's good name to play the USA card. Lame ass.

"Airbus does not even currently build a tanker; it is a paper airplane only, and they do not even have a factory built in the U.S. at this time."

My comment: No and yes. http://www.streetinsider.com/Press+Releases/U.S.+Air+Force+Selects+Northrop+Grumman+to+Provide +the+New+KC-45A+Aerial+Refueling+Tanker/3418003.html"]The (http://"[url) first KC-45A airframe completed its first flight on Sept. 25, 2007[/url] and will now begin military conversion to the tanker configuration. The KC-45A's Aerial Refueling Boom System is currently in flight test and has successfully performed numerous in-flight contacts with receiver aircraft. The factory deal was part of the bid and will involve over 50% of its component manufacture and assembly in American factories that are to be built as a result of the deal. Funny how 4 major air forces chose this "paper plane" over a so-called superior product.

"Our members could have started building the tanker today, and we have a superior product that has already been delivered to customers."

My comment: Now I know where the parrot propaganda came from! Superior to me does not mean producing a plane that takes 5 years of fixing a problem with the first customer or taking a 3 years for the 2nd customer.

"Now, with this decision, America has to rely on a foreign country to defend our nation. This is WRONG! And we will not stand silent on this issue. This is an unjustified gamble, which puts our Armed Services at risk."

My comment: Those evil Western Europeans! Now granted, some of those nations had not backed us up in Iraq, but the last time I recall EAD/Airbus countries defending our soil was...well, it was never. Western Europeans are our friends (well, I do have an issue with France), have been, and I do not have any doubt in my mind that that will change. And again, what a dumb, f'g ignorant, "play the USA" card ignorant drivel. And what kind of gamble are we talking about here? NG gets the payments to produce aircraft and are paid when planes are delivered (as that is my understanding of military contracts), and not in some lump sum payment :laugh:. What financial incentive does NG/Airbus/EADS have to leave this contract unfulfilled? Geez, the stupidity of this statement.

"American taxpayers should be outraged because they deserve better."

My comment: This one is so laughable. Yes, taxpayers deserve better and the USAF chose a plane whose purported cost benefits can be summarized here:

WASHINGTON, D.C., Feb. 14, 2008 (PRIME NEWSWIRE) -- Northrop Grumman Corporation (NYSE: NOC) announced today that comprehensive analyses indicate that its KC-30 Tanker proposed to the U.S. Air Force in the KC-X Tanker Replacement Program can provide the service more than $55 billion in cost savings over 40 years -- almost $1.4B per year (http://"http://www.streetinsider.com/Press+Releases/Northrop+Grumman+KC-30+Tanker+Can+Save+U.S.+Air+Force+More+Than+$55+Bi llion+Over+the+Life+of+the+Program/3363959.html
")-- compared to its competitor, the KC-767 Advanced Tanker (AT).

My comment: Yes, this is an NG anaylsis, but apparently the USAF believed it. Compelling numbers to me.

"At a time when the American economy is teetering on the edge of a serious downturn, the prospect of intentionally sending thousands of good paying jobs to Europe is outrageous. It’s a slap in the face to our Machinists Union members, SPEEA members and the related aerospace industry workforce and suppliers in the U.S. Our members have been passed over in favor of European workers, in exchange for vague promises of assembly work in some U.S. regions."

My comment: The American taxpayers this idiot is so concerned about in this 'serious downturn', has no problems being part of a problem that clearly did not provide superior acquisition cost and long-term value to the purchaser (USAF)---whose operating budget is supplied by US tax dollars (you, me, and yes, the Boeing people too).

"We must forcefully protest on the grounds that the KC767 is the best product made by the best workers and should be built here in the United States. U.S. taxpayers’ money shouldn’t be lining the pockets of Europeans. We ask that all concerned citizens contact their Congressional Reps and Senators, as well as the White House to express their outrage at this decision."

My comment: These evil Europeans will be paid by NG, so yes, they'll get a cut, but they are not controlling the purse strings. If anyone is gonna screw anyone once the check is deposited, it will be NG to Airbus/EADS. I am sure NG will profit handsomely and 25,000 US aerospace workers will have their pockets lined too. Sounds like a good thing for the US economy to me.

****** End of moronic Union president drivel *********

More nonsense:

From what I read the other day, the AF changed requirements late in the game, and that made Airbus's score lower, thus giving Boeing the win.

My comment: Yes. About the only thing factual and not emotion based in the multiple replies on the topic. According to Reuters (http://seattletimes.nwsource.com/html/businesstechnology/2004251196_webtanker01.html): The changed requirements were part of a computer model called the Integrated Fleet Air Refueling Assessment (IFARA) used to work out how the planes perform in specific war scenarios. The change had the effect of "leveling of the scores for both planes with regard to certain performance features," Thompson said.

Boeing can protest all it wants, but all that will do is to delay the implementation of a new tanker fleet. Furthermore, how can you argue the above testing criteria other than the *timing* of it? The above tests sounds like a "real life, case study" of how both planes will perform in a wartime scenario. I'd be surprised if we do not test all of our planes that way.

Bottom line is this:

1) Boeing's ethics scandal opened the door when they had it in the bag.
2) Their main US rival seized on the opportunity to partner with a foreign company whose plane was spec'd to win.
3) Boeing's plane was unsuccessful in the international market and had serious teething problems that took too long to fix, further adding to this perception
4) A "last minute" call *may* have put Airbus on top (we'll find out for sure soon enough), but again, if the Boeing product was "clearly superior", then why would it be an issue?

RobG
02-29-2008, 11:17 PM
Wow, It would take me 3 days to type that much.

I was quite upset when I heard the news this afternoon, our economy headed down the dumper and all, but after researching for about 10 minutes I was calmed a little.

Thanks for the filling in the rest of the details Bob. Curious to see what the details behind the decision. I was kind of surprised a contract that large didn't go to Halliburton.

Bob98SR5
02-29-2008, 11:23 PM
Rob,

haha, i realized i posted a novel after i posted it :hillbill: thanks for reading. Yes, it will be interesting to see if this supposed last minute criteria/spec will amount to anything. Funny re Halliburton contract :)

bamachem
03-01-2008, 07:06 AM
it was pretty big news here yesterday (mobile area). it will be really cool to have those built here at brookley field and see them test-flying them over the bay. :D

http://www.al.com/news/press-register/index.ssf?/base/news/120436652776060.xml&coll=3

The tanker award is the second major economic victory for Mobile in less than a year. Last May, German steelmaker ThyssenKrupp AG announced plans to build a massive, $3.7 billion steel finishing plant just north of the city.

"Our state is on a roll economically," said U.S. Sen. Richard Shelby, R-Tuscaloosa. "Bringing these jobs to Alabama will solidify our stellar reputation as an industrial leader and send a strong message to the rest of the world: Alabama is open for business."

State and local governments offered Northrop and EADS $120 million in incentives in support of the planned $600 million assembly complex and an Airbus engineering center already in operation at Brookley. The state will pick up $77.5 million of the total.

The lion's share of the money -- $95 million -- will go toward facility construction, with the rest split between site preparation, dock improvements and workforce training.

Neal Wade, director of the Alabama Development Office, called the deal "a tremendous aerospace shot" for the state and Mobile. "We've been working with suppliers and EADS over the last two years, and met with a number of them," he said. "We are going to be immediately starting to make sure that all suppliers for this project look into (locating) into Alabama."

Sweetening the win for Mobile, Airbus has announced plans to shift production of a freighter version of the A330 to the new plant, potentially adding 300 jobs.

"We already have begun the work necessary to expand our U.S. industrial footprint in support of this important program," said Ralph D. Crosby, Jr., chairman and chief executive of EADS North America.



also, looks like boeing is going to phase out the 767 line in everett since they didn't win this contract. if the plane is so good, then they should have orders from other countrys to keep the line going, right? maybe it's not so great after all...

"The Air Force announcement was met with disappointment in Boeing country. The company planned to assemble its tankers on its commercial 767 line in Everett, Wash., and modify them for military use in Wichita, Kan."

and...
http://blog.al.com/live/2008/02/boeing_washington_disappointed.html

"Condelles added that Boeing will phase out the 767 line at its factory in Everett, Wash. in light of the decision."


it will bring 2000 direct jobs with EADS/NG to alabama, but they say that the indirect supplier impact and boost to the economy would be more along the lines of 10,000 jobs for the alabama economy alone. add that to the 25000 construction jobs to build the new steel mill over the next 5 years and it's a HUGE impact for the state.

this area already has a very low unemployment rate to begin with. they will have to hire a lot of these people from outside the area, or others will have to come fill the positions left vacant by those who are already local. at any rate, our housing market isn't bad here to begin with, and it looks like we're about to get another boost. we have already been rated by Forbes magazine to be number one in the country for all 363 metropolitan areas for economic growth for the next 5 years, and that was before the EADS/NG contract was awarded.

linky (http://www.al.com/news/mobileregister/index.ssf?/base/news/1201860995300450.xml&coll=3)

bamachem
03-01-2008, 09:02 AM
http://news.yahoo.com/s/ap/20080301/ap_on_bi_ge/northrop_eads_air_force_tanker

"It will be very hard for Boeing to overturn this decision because the Northrop plane seemed markedly superior" in the eyes of the Air Force, said Loren Thompson, a defense industry analyst with Lexington Institute, a policy think tank. And as the winners of the first award, EADS and Northrop are in a strong position to win two follow-on deals to build hundreds of more planes.



more local stuff:

http://www.al.com/news/press-register/index.ssf?/base/news/120436653276060.xml&coll=3

The workforce challenges only grow greater for Mobile with Friday's announcement that Northrop Grumman Corp. and EADS will build military tankers and freight airplanes in the city.

"That's a greater challenge," said Marc Pelham, who directs the Brookley Field Industrial Complex for the Mobile Airport Authority. "It's not about recruiting jobs, it's about recruiting employees."

Southwest Alabama officials are already working to fill 2,700 jobs at the ThyssenKrupp steel mill in Calvert, 1,000 new jobs at the planned Austal USA shipyard expansion on the Mobile River, and 300 workers at the first phase of the Mobile Container Terminal. Now, there's the prospect of 1,800 aircraft workers to assemble the KC-45A tanker and accompanying Airbus A330 freighters.

Like the shipyard and steel mill workers, many of the aircraft assemblers will perform technical jobs requiring specialized training.

Those 5,800 employees would increase the number of jobs in Mobile and Baldwin counties by 2 percent.

That doesn't sound like a lot, but the unemployment rate remains low in the region -- 3.9 percent in Mobile County in December, 3.1 percent in Baldwin, both below the state level of 4 percent.

neliconcept
03-01-2008, 10:08 AM
my brain just committed suicide, ill read later

arjan
03-01-2008, 04:07 PM
Good posting Bob,

I agree, at the end of the day it's about what's best for the taxpayer.
I understand that boeing also out sources work to asia so it's half a dozen one or the other.
The reality is that Northrup Grumman buys from a European firm, but the European countries fly F16s etc. Its a matter of give and take to get the best result for everybody.

bamachem
03-04-2008, 08:39 AM
Defense analysts brief:



Editor's note: The following is the text of an issue brief released Monday by defense analyst Loren Thompson, who has closely followed the Air Force tanker contest.

--

Last week Northrop Grumman and European partner EADS confounded expectations by beating incumbent Boeing for the contract to build the Air Force's next-generation aerial refueling tanker. The initial contract will be for 179 modified wide-body jets, but eventually the entire fleet of 600 cold-war tankers will need to be replaced, making this one of the biggest marketing coups in defense-industry history. However, that is just the beginning of what Northrop Grumman has achieved, because Boeing didn't manage to beat Northrop in a single measure of merit. Here's how they were evaluated:


1. Mission capability. Arguably the most important factor, this metric compared the teams on performance requirements, system integration & software, product support, program management and technology maturity. The teams tied in most measures, but the Northrop offering was deemed to offer superior refueling and airlift capacity at 1,000 (nautical miles) range and substantially superior refueling and airlift capability at 2,000 (nautical miles) range. The superior airlift capacity of Northrop's plane was deemed a "compelling" consideration in giving Northrop the edge for this factor.


2. Proposal risk. This is the sole factor in which Boeing managed to match the appeal of the Northrop proposal, but it did so only after being pressed to accept a longer development schedule for its tanker. The Boeing proposal was initially rated as high-risk because reviewers felt the company was offering a plane that in many regards had never been built before, and yet claiming it could be built fast at relatively low cost. The company was forced to stretch out its aggressive schedule, adding cost.


3. Past performance. The Northrop Grumman team received higher ratings in past performance due to satisfactory execution of half a dozen programs deemed relevant to the tanker competition. Air Force reviewers had less confidence in Boeing's past performance due to poor execution in three relevant programs. In addition, Northrop's subcontractors were rated more highly on past performance than Boeing's.


4. Cost/price. This was the factor in which many observers expected the Northrop-EADS team to shine, because EADS subsidiary Airbus usually underbids Boeing in commercial competitions. But Boeing compounded its difficulties in the eyes of reviewers by failing to adequately explain its assumptions in calculating the cost of developing a tanker. The resulting low confidence in Boeing cost projections undercut its claims of lower life-cycle costs. Northrop was rated higher.


5. Integrated assessment. The "integrated fleet aerial refueling assessment" was designed to compare how the competing planes would fare in an operational setting using a realistic wartime scenario. The review found that the Northrop Grumman proposal could accomplish specified missions with nearly two dozen fewer planes than the Boeing proposal, a big advantage.

So Northrop Grumman's victory was not a close outcome. Although both proposals satisfied all performance requirements, the reviewers concluded that if they funded the Northrop Grumman proposal they could have 49 superior tankers operating by 2013, whereas if they funded the Boeing proposal, they would have only 19 considerably less capable planes in that year. The Northrop-EADS offering was deemed much better in virtually all regards.

Thompson is chief operating officer of the Lexington Institute in Arlington, Va., which is described as a free-market think tank dedicated to foreign policy, defense, education, tax reform and other issues.










so, Boeing is pissed because they lost to "little brother" of sorts.

Barak Obama is pissed because he's the Illinois Senator and Boeing is based in Chicago.

Hillary is pro-union, so she fells like she has to criticize the deal since Boeing is about as unionized as it gets.

Pelosi has to be outspoken because as a dem she has to be pro-union, but at the same time, Cali wins big in this since NG is based in Los Angeles. Notice how she says she just focuses on the national security of the deal and not "outsourcing", etc - the normal cries from the pro-union people.

anyway, here's the article. the bold at the bottom is the "meat and potatoes". the rest is just fluff.


http://blog.al.com/live/2008/03/northrops_victory_called_decis.html

Northrop's victory called decisive

Posted by GEORGE TALBOT March 04, 2008 6:45 AM
Categories: Top Stories

As political fury raged around the U.S. Air Force's choice for its $40 billion jet tanker contract, more details emerged Monday showing how soundly Northrop Grumman Corp. beat Boeing Co. for the coveted deal.

Los Angeles-based Northrop, which is proposing to assemble its tankers in Mobile, drummed its rival in every key criteria used by the Air Force to assess the two bids, a leading defense analyst said Monday.

"This was not a close outcome in any sense of the term," said Loren Thompson of the Lexington Institute in Arlington, Va. "Northrop won decisively and completely."

Thompson, who has close ties to the Air Force and has tracked the tanker competition, wrote in a report that Boeing "didn't manage to beat Northrop in a single measure of merit."

That didn't stop Boeing supporters from railing against the decision, which was announced by the Air Force late Friday. The company was heavily favored by analysts to win the award.

The deal includes 179 aircraft to be delivered by Northrop and its bidding partner, EADS North America, over the next 15 years. The team plans to assemble its tankers, which are based on a French-made Airbus jet, in a pair of new plants at Mobile's Brookley Field Industrial Complex, creating 1,500 jobs.

Leading Democrats including U.S. Sen. Hillary Clinton, D-New York, and House Speaker Nancy Pelosi , D-Calif., denounced the Air Force's choice on Monday, painting Northrop's plane as anti-American.

Clinton, vying for the Democratic Party's presidential nomination, said she was "deeply concerned about the Bush administration's decision to outsource the production of refueling tankers for the American military."

She said that while details of the decision where not fully clear, "it is troubling that the Bush administration would award the second-largest Pentagon contract in our nation's history to a team that includes a European firm that our government is simultaneously suing at the (World Trade Organization) for receiving illegal subsidies."


The comments came a day after her opponent for the nomination, U.S. Sen. Barack Obama, D-Ill., expressed disappointment that Chicago-based Boeing wasn't chosen for the work.


McCain's reaction


The leading Republican contender for president, U.S. Sen. John McCain, R-Ariz., said he wanted to hear more about the Air Force's selection process before rendering his opinion.

McCain exposed a corruption scheme between Boeing and Air Force officials the last time the service attempted to acquire new tankers. The $23.5 billion deal to lease 100 planes collapsed in scandal in 2003.

"Having investigated the tanker lease scandal a few years ago, I have always insisted that the Air Force buy major weapons through fair and open competition," McCain said in statement e-mailed to the Press-Register. "I will be interested to learn how the Air Force came to its contract award decision here and whether it fairly applied its own rules in arriving at that decision."


Hailed in Europe


In Europe, French President Nicolas Sarkozy hailed the award as "an important step in the strengthening of relations between the United States and Europe." His German counterpart, Angela Merkel, called the contract an "immense success" that could help EADS expand its footprint in the U.S.

Organized labor leaders called on Congress to keep the deal from going forward.

"At the very least, Congress should put a hold on it right now and take a very close look at how this decision was made," said Matt Biggs, spokesman for the International Federation of Professional and Technical Engineers, which represents some Boeing employees.

Others took aim at the Air Force, which wants the new planes to replace its aging fleet of more than 500 KC-135 Stratotankers.

Richard Michalski, the vice president of the International Association of Machinists and Aerospace Workers, had harsh words for Air Force Gen. Arthur Lichte, who helped announce the award last week.

"That general should look at where his paycheck comes from. The last time I looked it was the U.S.A.," Michalski said during a conference call with reporters. "That general in particular, with the rude comments he made, should quit his job, move to France and join the French Foreign Legion."

Lichte is a highly decorated pilot who oversees the service's Air Mobility Command, which is responsible for airlifting troops, cargo and conducting aeromedical evacuations around the world.

In announcing the award at a news conference on Friday, Lichte downplayed the Northrop plane's foreign roots.

"This is an American tanker," he said. "It's flown by American airmen. It has a big American flag on the tail, and every day it'll be out there saving American lives."

Pelosi's points


Pelosi, the House Speaker, said the Air Force's choice raised "serious questions" that deserved to be addressed by Congress. Among them, she said, were the national security implications of using an aircraft supplied by a foreign firm and whether sufficient weight given to the impact of the deal on American jobs.

"Given the ramifications of this decision for the United States, the Air Force must explain to Congress how it meets the long-term needs of our military and the American people," Pelosi said.


Both U.S. Sens. Richard Shelby, R-Tuscaloosa, and Jeff Sessions, R-Mobile, defended the Air Force on the Senate floor Monday.

"If you have a competition, shouldn't the one with the best proposal win?" Sessions asked.

Shelby said the uproar from the losing side "is based upon mendacity, rather than logic and reason."

"Any assertion that this award 'outsources' jobs to France is simply false," Shelby said. "This award does the exact opposite ?it insources jobs."

Boeing could challenge the award in a formal protest. The company said it was waiting to hear the Air Force explain its choice before making that decision.

EADS officials said they were confident the award would be upheld. The Air Force contest was the "most careful, most comprehensive, most transparent that's ever been conducted," said Ralph Crosby, chief executive of EADS in North America.


Pentagon buyer


Those comments echoed remarks made Saturday to the Press-Register by John Young, the Pentagon's top weapons buyer.

Young said the Air Force "did an outstanding job" with its evaluation, adding that he hoped to use the contest as a model for future competitions.

The meticulous oversight of the deal means Boeing would have "little success" of winning a protest, Boston-based analyst Myles Walton of Oppenheimer & Co. wrote in a note to investors Monday. Still, a protest could delay the program for about four months, to the end of June, Walton said.

Although the controversy could surface Wednesday morning at a previously scheduled Senate Armed Services Committee hearing, neither the committee's chairman, U.S. Sen. Carl Levin, D-Mich., nor his House counterpart, U.S. Rep. Ike Skelton, D-Mo., offered any reaction to the contract award by late Monday.

On Wall Street, Northrop's stock roared to its biggest single-day gain in more than four years, climbing $3.96, or 5 percent, to close at $82.57. Shares of Boeing fell $2.12, or 2.6 percent, to close at $80.67.

In Paris trading, shares of EADS rose 9.2 percent to close at $28.90, the biggest jump since March 2003.

TDiddy
03-04-2008, 08:42 AM
Bob, you should submit that to the WSJ as an op-ed piece :)

arjan
03-04-2008, 07:03 PM
Was it actually gone for a while? I just never noticed it.

I couldn't stand some of the replies and used Andy's info (Andy, I hope you don't mind) to make some points.

Corey was very aware where the info came from, you guys all seem to be cross forum checking :D

Bob98SR5
03-04-2008, 07:20 PM
arjan,

yeah, its like TC over there said in his reply. he's afraid of getting banned, presumably b/c history has shown, if you disagree w/ any of hot buttons, he'll ban you. thin skinned, indeed. but yeah, the thread was gone the next morning and replaced with his "nice guy looking out for you" boeing job ad...and as if that pallet pirate could make or even influence a hiring decision :shake:

bamachem
03-04-2008, 08:16 PM
no problem on using the material i had posted, especially the part that you put up.

boeing lost. they lost BAD. they lost in every category, and in some, there was no contest what-so-ever.

they were under-performing, over-priced, and too-agressive with their schedule.

only the first group of A330's will be built in europe and retrofitted in mobile. after the EADS facility is built and running in 2009/2010, they will build the planes here in one facility and then fit them for the tanker configuration in another (northrup grumann facility). EADS will keep some of the mobile-built airframes to fit them for a cargo/commercial application.

the NG/EADS plane is better on all aspects, the overall contract is cheaper (even though EADS is working against a 53% difference between the dollar and the euro), it's more what the air force was wanting, it's more fit for the missions, and it will be built in the US using domestic skilled labor.

boeing just needs to quit crying in their spilled milk and move on.

arjan
03-04-2008, 08:36 PM
Thanks Andy,

I think sharing with Europe is not a bad thing anyway, they return the favour by buying US fighterjets. I know for a fact that the Dutch fly F16s.
When I grey up I lived in a place between the target practice area and the airbase and had F16s and F15s fly over all day long. The F15s were US planes stationed in NL in the 80s.
I worked in an orchard as a teenager and sometimes they were actually practicing dogfighting right over top of us, quite a sight.
There is still an awacs base in NL also. The Dutch Navy uses Orions for chasing down subs also.

I guess my point is that you can't always expect to do everything at home, it's a world economy as mentioned before. The most important thing is what equipment works best for the men and women serving the country. Second is what's best for the taxpayer.

As for the Euro, I still have a couple of thousand Euros in a Dutch bank account. I am slowly getting rich :thumbup:

Bob98SR5
03-05-2008, 07:46 AM
News flash:

apprently the 'rumor' coming from unnamed conspiracy sources over at Boeing is that IT'S BUSH'S FAULT!

the stupidity still amazes me. how Bush could change and influence the USAF's selection process is beyond me. So Bush calls the USAF's procurement office, changes official selection policy, personally seals the deal with *just* the French president and not any of the other country's presidents whose countries are part of Airbus/EADS?

...sometimes its better not to repeat stupidity, but apparently some people have neither the intelligence or capability to separate fact from fiction

bamachem
03-05-2008, 08:39 AM
bob, you know that MUST be true since Bush is so anti-union that he would sabatage Boeing to make sure that they wouldn't get the contract. hell, he's fishing buddies with the French president and they sealed the deal over a bottle of bud light while fishing for marlin over the weekend - don't you know anything? :D

blaming Bush for Boeing being an overpriced union outfit with an inferior product to offer... hmmmmm, that's original...

oh, and the job count is up. NG ran some more numbers on the final contract that was awarded and it looks like there will be more jobs created that previously calculated.

__________________________________________________ ______________________

http://www.al.com/news/press-register/index.ssf?/base/news/1204712214271970.xml&coll=3

Obama is backpeddling:
"Sen. John Warner, R-Va., the senior Republican on the Armed Services Committee and a respected voice on defense issues, predicted that the Air Force's choice would prevail.

"We're going to get this thing," Warner told Hearst Newspapers. "I predict this plane will be started."

The controversy extended to the campaign trail, where Democratic presidential contenders Hillary Clinton and Barack Obama, squaring off in a pair of key primaries in job-hungry Ohio and Texas, had both expressed their disappointment with the Air Force's choice.

Obama, who lives in Chicago, the home of Boeing's corporate headquarters, said he found it hard to believe "that having an American company that has been a traditional source of aeronautic excellence would not have done this job."

But a campaign spokesman for Obama said Tuesday that the U.S. senator from Illinois may not necessarily be opposed to Northrop's win.

"My understanding is that he has a great deal of respect for Boeing and that he simply had a policy question about giving a defense contract to a team that includes a foreign contractor," said U.S. Rep. Artur Davis, D-Birmingham, who served as Obama's campaign coordinator in Alabama.

"He said he was not acquainted with all the circumstances and ultimately wanted to hear from the people who are familiar" with the competition, said Davis, who added that he strongly supported the Air Force's choice."

---my comment: then why is he being publically critical on the campaign trail, yet cautious in his formal releases like this one? posturing for the unions, plain and simple...

Hillary, like always, just blames Bush - how original...
"Clinton, a U.S. senator from New York, blamed President Bush for meddling in the tanker contest, saying she was "deeply concerned about the Bush administration's decision to outsource" the tanker contract.

That drew a response from White House spokesman Blair Jones, who told the Press-Register late Tuesday that the administration 'had no involvement in this decision.'"


At least McCain is showing some common sense on the issue:
"U.S. Sen. John McCain, R-Ariz., who clinched the Republican Party's nomination for president Tuesday, told reporters in Phoenix that jobs were irrelevant to the Air Force's choice.

"I've never believed that defense programs, that the major reason for them should be to create jobs," said McCain. "I've always felt that the best thing to do is to create the best weapons system we can at minimum cost to taxpayers." "


And check out the new job numbers:
"Northrop, battling to win public support for its tanker, said an updated economic impact study showed its assembly plant would create nearly twice as many jobs nationally as had been previously indicated.

Los Angeles-based Northrop has long projected that its tanker program would create 1,500 jobs in Mobile and 25,000 nationwide. But a draft copy of the study provided to the Press-Register indicated that Northrop could create 14,218 direct U.S. jobs and 34,000 indirect jobs, or a total of more than 48,000.

If accurate, the new total would boost Northrop above the 44,000 jobs that Boeing has projected its tanker program would support. Boeing said its total represented a mix of new and existing jobs but declined to provide a more detailed breakdown."


Boeing is surprised that it was a "risky choice"! lol... at least NG/EADS has a prototype in the air!
"Boeing said in a news release Tuesday that it was surprised by news reports indicating its offering in the competition, a KC-767 tanker based on the commercial 767 jet, was rated as riskier than the Northrop plane.

"Boeing is a single, integrated company with its assets, people and technology under its own management control -- with 75 years of unmatched experience building tankers," said Mark McGraw, the company's vice president for tanker programs.

"Northrop and EADS are two companies that will be working together for the first time on a tanker, on an airplane they've never built before, under multiple management structures, across cultural, language and geographic divides. We do not understand how Boeing could be determined the higher risk offering."

Defense analyst Loren Thompson, in a report released Monday, said risk was the only one of five key assessments in which Boeing matched the Northrop plane.

The Air Force initially judged that Boeing's offering was risky for two reasons: The plane had never been built and its schedule was overly aggressive, Thompson's report said.

Thompson, who said his analysis was based on information from the Air Force, said the tie came only after Boeing agreed to lengthen its development schedule, adding cost to its proposal.

"The Air Force has placed a burden of proof on Boeing that is going to be very difficult for them to overcome," said U.S. Rep. Jo Bonner, R-Mobile. "At the end of the day, the fact remains that the Air Force believes Northrop has the best plane." "

Bob98SR5
03-05-2008, 10:42 AM
thanks andy, i was gonna dig up more info over lunch.

bottom line, boeing lost. no amount of crying, moaning, conspiracy theories, etc will change that.

bamachem
06-18-2008, 11:32 AM
UPDATE:

and the GAO has sustained Boeing's protest of the contract award, delaying the delivery of the first tanker by at least a year, probably more.

http://blog.al.com/live/2008/06/boeing_wins_tanker_protest.html

if everything in the GAO report is factual, then the Air Force really bungled the process once again...

http://blog.al.com/pr/2008/06/Boeing%20Decision%206.18.08.pdf



Boeing wins tanker protest

Posted by George Talbot June 18, 2008 11:49 AM
Categories: Aerospace, Breaking News, Business

The Government Accountability Office today sustained Boeing Co.'s protest of the U.S Air Force tanker contract, dealing a major setback to Northrop Grumman Corp. and EADS North America, which together planned to assemble the planes in Mobile.

The Air Force selected Los Angeles-based Northrop for the contract on Feb. 29. Boeing challenged the award in a protest before GAO, claiming the Air Force's evaluation was riddled with errors and skewed to favor Northrop.

In a three-page statement issued today, GAO said the Air Force "did not assess the relative merits of the proposals in accordance with the evaluation criteria identified in the solicitation."

The agency recommended that the Air Force re-open the competition, a process that could take a year or longer to complete.

04 Rocko Taco
06-18-2008, 11:47 AM
here we go again.